IIA Exam IIA-CIA-Part3-3P Topic 3 Question 28 Discussion

Actual exam question for IIA's IIA-CIA-Part3-3P exam

Question #: 28
Topic #: 3

Which of the following statements is correct regarding corporate compensation systems and related bonuses?

1) A bonus system should be considered part of the control environment of an organization and should be considered in formulating a report on internal control.

2) Compensation systems are not part of an organization's control system and should not be reported as such.

3) An audit of an organization's compensation system should be performed independently of an audit of the control system over other functions that impact corporate bonuses.

A1 only

B2 only

C3 only

D2 and 3 only

Show Suggested Answer

Suggested Answer: D

by Raina at Jul 30, 2023, 12:42 AM

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Aaron

2 months ago

Bonuses? More like 'boo-nuses' if you ask me. But hey, at least they're keeping the auditors on their toes!

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Tegan

1 months ago

Yeah, it's important for auditors to consider the bonus system when evaluating internal controls.

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Alberta

1 months ago

I agree, bonuses can definitely impact the control environment of an organization.

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Chau

1 months ago

I think the correct statement is 1) A bonus system should be considered part of the control environment of an organization and should be considered in formulating a report on internal control.

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Roxanne

2 months ago

Ah, the classic 'separate but equal' dilemma. I'd go with Option D - let's keep those compensation audits independent, folks!

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Selma

3 months ago

Hmm, I think Option 3 is the way to go. The compensation system audit should be done independently to ensure objectivity.

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Lorean

1 months ago

Dong: Option 3 seems like the best choice for maintaining transparency in the process.

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Dong

1 months ago

User 2: Definitely, it's important to have an independent audit for accuracy.

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Georgiana

2 months ago

User 1: I agree, keeping the audit of the compensation system separate ensures objectivity.

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Yolande

3 months ago

I'm not so sure about that. Compensation is a separate system, and shouldn't be lumped in with the overall control environment. Option 2 makes more sense to me.

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